The 2 questions you must ask before spending money in your business
Yesterday’s blog post was a bit of doom and gloom, all about the recent reductions in consumer spending and a growing sense of panic on the hight street.
Then along came the first interest rate rise in 10 years.
It’s a good time to have low debt, to be liquid, to have some reserves and for you not to be chasing any expensive bright shiny objects, whether personal or professional.
I doubt that the trade are having a good morning, with suppliers wondering whether all of this news will suppress investment into capital equipment and practice development.
It need not – but now it’s more important that ever to remember a simple rule when you are spending money.
Is this purchase going to feed me or eat me?
A long time ago I was involved with Boots Dental Care in launching one of the first ever Christmas tooth whitening campaigns in UK dentistry.
The intention was to invest some hundreds of thousands of pounds in a national advertising campaign (print media – how things have changed) and, of course, in store at the 40+ sites where dentistry had been introduced.
Meeting with the bean-counters at the Boots Nottingham Head Office was educational – as they wanted to know:
What is the value case for this investment?
Which, for the uninitiated, meant – “if we give you this money, how much money are you going to give us back – and when?”
So targets for sales were agreed, promises were made and, of course, in a corporate you only get to fail on targets and promises as many times as a Premier League manager.
In the event, we smashed the target – but it’s the principle that is relevant in today’s economically wobbly landscape.
Yet again, at yesterday’s Practice Plan Workshop Tour, we asked the audience how many of them were investing in digital advertising (Google/Facebook) and were cognisant and confident in their Return on Investment – one hand raised in a room of 100+ (and one full-time TCO in the room – our work will never be done).
Whether it’s advertising and marketing, digital dental equipment or new team members, training or coaching – the 2 questions require an answer.
p.s. forgive me – but I cannot resist telling you that the Extreme Business 2018 workshops WILL FEED YOU – I’m 110% convinced that your investment will be repaid many times over.
Please download our brand new programme brochure – hot off the press this morning – we are very proud of this so please take a look.